101st Reason to Say Wow? Consumers Actually Buying Windows Vista
Hard as it might be to believe, people are actually buying Windows Vista. After market close yesterday, Microsoft reported a 27% surge in revenue, to $13.76 billion for the first quarter of 2007, its best quarterly revenue growth in eight years, on robust demand for its new operating system.
Vista appears to be selling far better than anyone anticipated. Perhaps even Microsoft itself. Asked during an earnings call for an update on Vista adoption thus far, Microsoft CFO Chris Liddell had this to say:
Clearly we are very happy with the client division overall. As you’ve seen since we launched Vista, the revenue growth has been in excess of 20% three quarters in a row, so the overall [headline] number, very good.
“In terms of the premium mix, also very happy about that. Now, in this case, premium mix brings in both Vista and XP premium sales as well, and that’s tracking in the mid-70s, so 75% for the quarter, and that compares to I believe 59% in the equivalent quarter last year, so up 16 points year over year. So we’re very happy with the adoption of Vista Premium and also happy with the old XP Media sales as well.
“The other thing I’ll point to is on the client annuity agreements, which is probably the best leading indicator we can think of of people’s intention to adopt, that’s still very early in the adoption cycle for businesses, but the volume licensing portion of our business was up 27% in the client area, so that’s a very good leading indicator from our point of view.
“And sort of finally, as a wrapper, year-to-date sales are now 85 million units for Vista. That compares to about 45 million for XP over the same period, so almost twice as much.
“So it’s still early days but progress, we’re very happy with so far.”